Euro Falls for Second Week as Slow Growth Reduces Risk Demand

The euro dropped for a second week against the dollar to a five-week low as weaker economic data and calls by a European Central Bank official for more economic aid damped investor appetite for higher-yielding currencies.

The 16-nation currency reached a seven-week low against the Swiss franc after ECB council member Axel Weber Aug. 19 told Bloomberg Television the central bank should assist financial institutions to prevent year-end liquidity tensions. The dollar and yen rose against most of their major counterparts as data indicated the global economic recovery may be faltering. The Japanese finance minister is set to meet the prime minister this week to discuss the nation’s currency.